Sri Lanka Police have urged the general public to carefully read and fully understand the terms and conditions imposed by online lending institutions before obtaining instant loans through digital platforms.

Police said that taking the time to understand these conditions could help borrowers avoid potential difficulties and prevent financial losses.

The Financial Crimes Investigation Division of the Criminal Investigation Department has launched an investigation into a system through which instant loans are offered online via advertisements posted on social media and mobile applications.

The investigation was initiated following information that some institutions were causing difficulties for customers by charging high interest rates and imposing loan instalments when borrowers attempted to repay the instant loans they had obtained.

According to the investigation, some borrowers have faced difficulties because they obtained loans without properly understanding the terms and conditions imposed by the relevant lending institutions.

Police pointed out that the terms and conditions specified by these institutions clearly state how the loans are to be repaid and that borrowers are responsible for all risks associated with using the applications.

Further investigations have also revealed that some individuals have installed these applications and obtained loans without properly reading or understanding the applicable terms and conditions, police said.

Police therefore urged the public to exercise caution and ensure they have a clear understanding of all conditions before obtaining loans through online platforms.

They emphasized that being properly informed and making careful decisions when using online lending services can help borrowers avoid unnecessary difficulties and financial losses.